SHOCK & AWE! Trump Trade War Batters Crypto, Stock Market, Supply Chains, Global Economy
The application of Tariffs on Saturday, February 1, by President Trump, against Canada, Mexico, and China are affecting Stock Markets. All indices are DOWN in late Sunday evening Trading.
Canada and Mexico say they will retaliate.
Investors seem shocked that President Trump made good on his promise to implement Tariffs. They shouldn't be shocked - he's not the typical phony politician… he actually DOES what he says he's going to do.
US equity futures tumbled as the market prepares for Trade War 2.0, with both tech and small-caps underperforming as the dollar soared more than 1% pre-mkt, trading near a two year high and the yield curve bear flattens after Trump announced tariffs on Canada, Mexico and China, and warned that European levies are coming. The Canadian dollar fell to its lowest since 2003 and the euro weakened. As of 8:00am ET, S&P futures are down 1.7%, but off session lows having tumbled as much as 2% earlier; Nasdaq futures slide 1.7% with the Mag7 all broadly lower (GOOGL -1.8%, AMZN -2%, AAPL -1.9%, MSFT -1%, META -2%, NVDA -3% and TSLA -3%). Pre-mkt, Mag7/Semis are providing no safety and Cyclicals ex-Energy are under pressure as the market analyzes whether "Trade War 2.0 ushers the end of US Exceptionalism" according to JPM. The 2Y yield is +7bps pre-mkt as the bond market forecasts an inflationary impulse from the tariffs, indicating the market is not selling off on growth but rather on inflationary fears. Trump is said to have calls scheduled with Canadian and Mexican leaders today but warns that tariffs will be implemented on Tuesday if no deal is achieved; sets EU as the next target. Today’s macro data focus will be on ISM-Mfg, Vehicle Sales, and Construction Spending.
In premarket trading, North American stocks most exposed to tariffs fall after President Trump followed through on pledges to impose tariffs on Canada, Mexico and China. Shares in automakers, chipmakers and energy companies decline (General Motors (GM) -7.3%, Ford Motor (F) -4.2%, Tesla -3%; Nvidia (NVDA) -3%, Broadcom (AVGO) -3%; Constellation Energy (CEG) -4%, Oklo (OKLO) -8%). Companies exposed to manufacturing or imports from China are also down: (AAPL -1.9%, DELL -3%).
The impact of tariffs ricocheted across global markets. It wasn't just US stocks that got hit: European carmaker shares fell, with Volkswagen AG and Stellantis NV shedding more than 5%. Crypto was also hammered as Ether plunged 11% in a broad move away from risky assets. Meanwhile, oil prices climbed on worries about a disruption to supply.
European stocks also tumbled as investors brace for the region to be the next target of President Trump’s trade tariffs. The Stoxx 600 is down 1.3%, as automobile and technology shares are the worst-performing sectors, while telecommunications and utilities stocks are posting the smallest losses.
In the past 24 hours , $2.17 billion was liquidated from the crypto market, with 728,658 traders liquidated. It's sort of like the fulfillment of the reverse (MSNBC) Cramer. He recently said to buy crypto LOL.
https://halturnerradioshow.com/index.php/news-selections/world-news/stock-markets-all-down-in-futures-after-tariffs-applied-canada-mexico-face-actual-collapse
https://www.zerohedge.com/market-recaps/market-wasnt-prepared-it-futures-tumble-dollar-soars-trump-launches-trade-war